Ibm as a Multinational Corporation

Topics: Globalization, Computer, Mainframe computer Pages: 2 (523 words) Published: May 2, 2011
IBM as a multinational corporation
Write about a multinational corporation (MNC) of your choice. Q1. How international is that company?
International Business Machines, IBM, is a multinational computer, technology and IT consulting corporation headquartered in New York, United States. IBM manufactures and sells computer hardware and software (with a focus on the latter), and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology. IBM has been well known through most of its recent history as the world's largest computer company and systems integrator. With eight research laboratories worldwide, IBM has over 407,000 employees including scientists, engineers, consultants, and sales professionals in over 200 countries. Q2. What are its advantages and challenges when doing business in overseas? Advantages

IBM raised competitiveness such as knowledge from doing global business, technical Know-how which can make them differentiate, and knowledge-based network which help to share these things timely. When the 3rd party is delegated, IBM will lose a significant portion of control on the market. Managing product, pricing, distribution and advertising in the headquarters strengthened the control of IBM on the local market, and then products can be delivered more efficiently. In addition, since IBM has specific computer technology that can easily be copied, they can protect and control their technology by adapting to the local market rather than exporting. It is possible to utilize local characteristics such as government policy and human resource. By forming a subsidiary in the country, they can get around a tariff wall or the regulations and benefit from government support. Besides, they can get human resource in the local. For example, the conditions of India such as many high quality staff people in the IT field, using English, 12 hours difference between India and Silicon Valley...
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